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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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NY 2nd Month Sugar Futures

NY sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot at 18.67. The stochastics are rising, with %K/%D diverging on the upside out of the oversold. The MACD diff just converged on the upside, a strong buy signal. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 18.75. This would confirm the trend for rising prices, up to the 19.00 level before 19.10, 40 DMA resistance. On the downside, a breach of support at 18.23 would help confirm the bearish momentum. This could also trigger losses towards the 18.00. Indicators point to higher prices, but if prices break above current resistance today, futures can push higher in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday as protracted buying pressure triggered a close on the front foot at 535.20. The RSI is rising, while %K/%D is diverging towards the overbought. Likewise, the MACD diff just converged on the upside, a strong buy signal. On the upside, finding support above the 40 DMA at 536.37 could trigger gains through 540, the recent highs, towards 547.90. On the downside, a break below the 10 DMA at 527.76 level could trigger losses back towards 100 DMA at 524.42. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer lower wick signals that the buying pressure is growing, and the bullish outlook is on the horizon.

NY 2nd Month Coffee Futures

NY coffee futures struggled to break below the support of 218 yesterday, and intraday trading saw prices close below at 218.90. The RSI is falling, and %K and %D are diverging on the downside towards the oversold. The MACD diff is negative and diverging marginally, suggesting further appetite for lower prices, but futures need to break the support of 218 to trigger the momentum. A break below this level towards 212.60 would confirm the stronger negative momentum. Conversely, appetite for prices above 221 triggers a test of trend resistance of 10 DMA at 223.43. A gravestone doji candle shows rejection of lower prices but still closed the lows. The indicators suggest further momentum below this level in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures weakened marginally yesterday after piercing the support level of 1952. The market closed lower at 1944. The stochastics are falling, with %K/%D diverging on the downside in the oversold. Likewise, the MACD diff is negative and diverging, pointing to strong selling pressure in recent days. To confirm further downside momentum, futures need to break below the support of 1952 completely, down to 1900. A break below this level suggests growing conviction on the downside in the longer term. On the upside, reaffirmation of support at 1950 could set the scene for higher prices back to breach 2000 up to 10 DMA at 2004, confirming an inverse hammer formation. The indicators confirm continued selling pressures, but with the stochastics being oversold, we expect the momentum to slow in the near term before a trend reversal.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as marginal buying pressure triggered a close on the front foot at 2354. The stochastics have converged on the upside and now rising, as the MACD diff is negative and converging, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 2400, but the market needs to take out immediate trend resistance of 10 DMA at 2372 beforehand. On the downside, support around 2333 is robust in recent sessions, and if this level does not hold firm, we could see prices retreat back through to 2317 before 2300. Longer upper wick points to the appetite for higher prices, however, futures need to take out 10 DMA in order to confirm the outlook on the upside.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures opened the higher day on day yesterday but struggled above the DMAs once again to close at 1749. The stochastics are rising, with the %K/%D edging higher, as the MACD diff is positive and diverging. This suggests we could see further upside momentum in the near term. To confirm this, prices need to break above the DMAs at around 1760. If the prices break through this level, we could see prices gain ground back through 1800. On the downside, a break below 1730 and 1710 could signal further downside potential. The bearish candle body after robust gains points to resistance at DMA levels standing firm, and we could see prices edge lower today as they struggle above this level.

Contents

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

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